2013 Annual Report - Rivermark Community Credit Union

“I love my Rivermark Mobile app!
I can get my account information
anywhere, anytime!”
5 out of 5
- cherrick
The President’s Report
Welcome to the 63rd Annual
Meeting of Rivermark Community
Credit Union. 2013 was an
outstanding year on many counts,
with continued improvement in
our financial results and significant
progress made in fulfilling our
mission of making life better for
our members with incredible
financial solutions, anywhere,
anytime.
From a financial perspective,
2013 was a strong year. The
Credit Union finished the year
with assets totaling $569 million, up $22 million for the year
(growth of 4%). Deposits, which drive asset growth at the Credit
Union, were up $15.3 million in 2013. Growth in deposits was
driven by Regular Shares (up $12.6 million), Money Market (up
$11.7 million), and Checking (up $7.9 million). A byproduct of
this historically low interest rate environment has been the
outflow of dollars from Certificates of Deposit. CD’s were down
$14.4 million last year, as members saw little value in holding
term investments at such low interest rates.
Loan activity in 2013 showed two distinct trends, both reflecting
the economic circumstances of our members. Loan growth was
relatively lethargic through the first three quarters, up only $5.6
million. This was due largely to the fact that our members, and
consumers in general, were apprehensive of taking on more
debt and continued to shore up their personal balance sheets.
The last quarter told a different story, as lending picked up
substantially (and unseasonably). Loans in the 4th quarter
grew $8.2 million, bringing growth for the year to $13.9 million.
Loan activity in the latter part of the year picked up across our
industry, as auto leases expired, vehicles aged, and members
continued to recover from tough economic circumstances.
Rivermark believes that, through refinancing opportunities,
we can grow our loan portfolio while helping members lower
their existing cost of debt. Loan activity continues to show
strength into 2014.
Earnings at Rivermark totaled $6.5 million, up an impressive
30% compared to the previous year. As was the case for
most lenders, Rivermark experienced substantial relief in the
need to fund our reserves for potential loan losses. As asset
quality continued to improve in 2013, we were able to lower
the monthly funding of this reserve account, and that had an
immediate and direct positive impact on our bottom line.
Strong earnings in 2013 helped the Credit Union continue to
rebuild its capital position. At year-end, the ratio of capital to
total assets stood at 9.0%, up from 8.33% at the end of 2012.
This strong capital position will provide the means for the Credit
Union to continue to invest in transformative technology and
delivery channel solutions to make banking with Rivermark
easier and more accessible than ever before.
As a not-for-profit, member-owned financial cooperative,
financial performance is never the ultimate goal. However,
strong financial performance enables us to deliver on our
mission of making life better for our members with incredible
financial solutions anywhere, anytime.
Some key initiatives achieved in 2013:
•
Online Chat was implemented in June 2013 and has been embraced by our members.
•
We implemented a very member-friendly online payments process.
•
We enhanced and streamlined our new member process, making it easier for new members to join Rivermark.
•
Rivermark was one of the first credit unions in our region to implement a responsively designed and user-friendly website. Early feedback on this redesign has been outstanding.
•
We also set the vision and foundation for our forthcoming Member Resource Centers by incorporating great member service with an emphasis on self-service, effective problem resolution, the ability for members to remotely make appointments with our branch staff, and an overall new and unique branch experience.
Supervisory Committee Report
Your Supervisory Committee was comprised of five
volunteers at year-end 2013: Antoine Cotton, Kara Oaks,
Bill Roberts Jr., Jeremey Vandehey and Matthew Stinger.
Our responsibility is to oversee and verify that the Credit
Union has established and maintains an internal framework
that ensures compliance with laws and regulations and the
reliability and integrity of financial statements.
We fulfill this responsibility in primarily two ways; we meet
regularly with our Internal Auditor and we engage an external
audit firm to audit the financial statements. We selected
Moss Adams LLP, Certified Public Accountants to perform an
independent audit of Rivermark Community Credit Union’s
financial statements in accordance with generally accepted
auditing standards.
In their opinion, the financial statements present fairly, in
all material respects, the financial position of Rivermark
We will continue to build on the great momentum we
achieved in 2013, and look forward to a great year serving
our 65 thousand members. Thank you for being a member
of Rivermark!
Scott Burgess - President/CEO
“The Rivermark staff have
always gone above and
beyond for me and always
are kind and actually
care about you and your
financial security.”
5 out of 5
- Rivermark Member
Community Credit Union as of September 30, 2013, and the
results of its operations and cash flows for the twelve months
covered by the audit.
A copy of the complete audited financial statements is available
at the administrative office of Rivermark Community Credit
Union. The condensed financial statements in this Annual Report
were taken from our Financial Statements as of December 31,
2013.
Committee members attend and participate in the monthly
Board of Directors meetings. The Committee itself also meets
monthly. At those meetings we review the work of the Internal
Auditor, management and the external auditor to ensure that
the Committee’s responsibilities are properly discharged.
Bill Roberts Jr. - Chairman
Rivermark Community Credit Union
2013
389,392,972
10,430
12,963,509
404,621,199
32,031
12,337,725
118,902,206
1,178,711
9,841,116
6,526,090
8,501,449
547,316,483
126,805,670
1,707,034
9,067,035
10,639,441
4,099,260
569,309,395
2012
2013
1,568,543
Accounts Payable
3,172,078
Accrued Expenses/Settlements/Deferred Income
4,740,621
Total Liabilities
496,272,413
Total Deposits
14,186,249
Reserve Accounts
32,117,200
Undivided Earnings
46,303,449
Total Equity
547,316,483
Total Liabilities & Equity
2,449,913
4,385,119
6,835,032
511,561,529
14,186,249
36,726,584
50,912,833
569,309,395
* Unaudited
300
The 62nd Annual Meeting of Rivermark Community Credit Union was held
on Thursday, April 18th, 2013 at Rivermark’s Hawthorne Branch in Portland,
Oregon.
200
100
0
2010201120122013
Vice Chairman Lucas asked, for the benefit of the secretary, Terry Bernhardt,
that anyone addressing the Vice Chairman to please stand and state his or
her name. Also, in the interest of expediency, all motions should be held until
all reports are presented and then only one motion will be made to accept all
reports and other business.
60
50
40
30
20
10
2010201120122013
400
300
200
100
0
2010201120122013
600
500
400
300
200
2010201120122013
Board of Directors
Supervisory Committee
Senior Team
Carl Pfeiffer, Chairman
Steve Lucas, Vice Chairman
Dennis Fullan, Secretary
Carmelina Cockrell
Mary Alice Helikson
Tracy Petersen
Patti Schnur
Bill Roberts Jr., Chairman
Antoine Cotton
Kara Oaks
Jeremy Vandehey
Matthew Stinger
Scott Burgess, President/CEO
Gayle Rust Gustafson, Lending Leader
Jackie Henderson, Human Resources Leader
Rob Mills, Technology Leader
David Noble, Marketing Leader
Seth Schaefer, Sales Leader
(as of 12/31/13)
Vice Chairman Lucas also advised that we would dispense with the reading
of the minutes from the prior meeting since they are contained in the Annual
Report. Vice Chairman Lucas asked for any additions, deletions or corrections
to the minutes. There were no changes to the minutes.
The President’s Report was included in the 2012 Annual Report. The Vice
Chairman asked if there were any questions regarding the President’s
Report. There were no questions raised. He then introduced the current
Board Members who were in attendance at the meeting: Lina Cockrell, Tracy
Petersen, Mary Alice Helikson, Dennis Fullan, Patti Schnur, Terry Bernhardt, and
Bob Barnard.
500
100
(as of 12/31/13)
Vice Chairman Steve Lucas convened the meeting at 6:00 p.m. The meeting
was called to order with the required quorum present. The Annual Report was
provided to those in attendance as they arrived.
70
In Millions
Liabilities and Member Equity*
In Millions
2012
2012 Annual Meeting Minutes - Hawthorne Branch - Portland, Oregon
400
In Thousands
19,076,098
1,713,776
12,694,506
33,484,381
24,597,680
8,886,701
(123,090)
8,763,610
2,257,075
6,506,535
500
Members
Loans to Members
Accounts Receivable
Cash
Investments
Prepaid Expenses
Premises & Equipment
Accrued Income/NCUSIF Deposit
Other Assets
Total Assets
20,122,908
1,348,348
12,447,000
33,918,255
26,376,716
7,541,539
157,328
7,698,867
2,900,849
4,798,018
In Millions
Statement of Financial Condition*
2013
Loans
Interest on Member Loans
Income in Investments
Other Income
Total Income
Operations & Administrative Expenses
Income from Operations
Non-Operating Income
Income Before Interest Paid
Interest Paid
Net Income
2012
Deposits
Statement of Income*
Assets
600
The Supervisory Committee of Rivermark Community Credit Union is made
up of 3 to 5 people appointed by the Board of Directors for a one-year term.
Their objective is to preserve a financially stable Credit Union that will function
in the best interest of all members. The Vice Chairman gave an explanation
of their role in monitoring credit union operations and procedures. This
committee oversees the initiating of the annual audit, conducts biennial
member account verification, and provides an on-going review of closed
accounts. This Committee meets on a monthly basis. The Vice Chairman
then introduced the Supervisory Committee members who were present at
the meeting: Supervisory Committee Chairman Bill Roberts Jr, and Kara Oaks.
The Vice Chairman asked if there were any questions regarding the Supervisory
Committee Report, which was also contained in the Annual Report. There were
no questions raised.
The Vice Chairman verified that there was no unfinished business to be brought
before the membership. He advised those present that although the Board of
Directors has the power to make decisions for the credit union on behalf of the
members, any member may bring any matter onto the floor for discussion by
the membership. He asked if there was any new business to be brought before
the meeting. One question was raised and responded to regarding branch and
kiosk locations. There was no other new business.
Vice Chairman Lucas explained the procedure for electing the Credit Union
Board of Directors. A Nominating Committee is appointed, and all of the Credit
Union’s members are notified of how they could have their names placed in
nomination for any Board vacancies. All members are also informed of their
right to be nominated by petition, which would automatically place them on the
ballot. Petitions needed to be signed by at least fifty (50) members and filed
with the Nominating Committee by the stated deadline.
The committee nominated the following individuals for the three (3) openings
on Rivermark Community Credit Union’s Board of Directors’: Carl Pfeiffer,
Steve Lucas and Bob Barnard are seeking re-election. No other members
asked to be nominated by petition, and the Credit Union’s bylaws do not
allow nominations from the floor at this meeting. Therefore, as there is only
one nominee for each vacancy on the Board, the Vice Chairman asked that
the members present at this meeting cast a unanimous ballot for these
nominees to fill the vacancies on the Credit Union’s Board.
Rivermark’s Vice Chairman asked for a motion from the floor to accept
the three nominees to fill the Board positions. Motion to accept the three
nominees by unanimous ballot was made by Ted Yucho and seconded by
Christine Anne Hofer-Schoen. The Vice Chairman called for all in favor to
signify by saying “Aye”. There were no opposed. Motion accepted.
Vice Chairman Lucas introduced the President and CEO of Rivermark
Community Credit Union, Scott Burgess who gave the President’s Report.
Burgess gave a brief overview of the previous year’s financials and shared
the credit union’s successes over the past year. He also shared information
on exciting new products and services that the credit union will be offering
in the near future.
The Vice Chairman asked for questions after the presentation of the
President’s Report. There were no questions raised.
The Vice Chairman asked for a motion to accept the following:
· The Minutes from the 2011 Annual Meeting · The President’s Report
· The Supervisory Committee Report
Motion to accept the minutes and stated reports was made by Ted Yucho
and seconded by Walden Cohenour, Jr. The Vice Chairman called for all in
favor to signify by saying “Aye”. There were no opposed. Motion accepted.
Vice Chairman Lucas declared the 2012 Annual Meeting “adjourned” and
thanked everyone for coming and participating in this annual event. The
meeting was adjourned.
Respectfully submitted,
Carl Pfeiffer
Chairman of the Board
“I just made a
mobile deposit for
the first time and
I am in love with
Rivermark all over
again.”